Sophisticated Syndicate Siphons Sh1.5 Billion from Equity Bank in 90 Days
In a shocking revelation, court documents have exposed an elaborate scheme that led to Equity Bank losing Sh1.5 billion in just 90 days, from 1st May 2024, to 31st July 2024. The fraud, allegedly orchestrated by lawyer Esther Bitutu Kadiki, involved a complex network of individuals and companies acting as proxies to conceal the illicit funds, highlighting vulnerabilities in financial systems and raising critical questions about fraud prevention in the banking sector.
According to police investigations, the syndicate siphoned Sh1,499,465,831 from Equity Bank’s internal Salaries Remittance General Ledger Account. The funds were transferred to multiple non-Equity Bank accounts, with fictitious narrations entered into the bank’s systems to disguise the nature, source, and movement of the money. This deliberate obfuscation created a convoluted trail, making it challenging for authorities to trace the funds initially. The prosecution described the operation as a meticulously planned scheme, with the siphoning of funds being the final step in a multi-stage process. It began with the recruitment of individuals to execute the fraud, led by Ms. Kadiki. The complexity of the operation underscores the need for robust internal controls and vigilant oversight within financial institutions.
At the center of the scandal is Esther Bitutu Kadiki, a lawyer accused of masterminding the fraud. Court proceedings revealed that Ms. Kadiki allegedly funneled Sh38 million into accounts at NCBA and National Bank, registered under Inforide Point Limited, a company she co-owns with her husband, and Kadiki & Advocates, an account solely in her name. These transactions further illustrate the syndicate’s use of legitimate business entities to mask their activities. Ms. Kadiki appeared in court on 6th May 2025, where the prosecution argued that her actions were part of a broader, intricate plan. The case has drawn significant attention, not only for the scale of the theft but also for the audacity and sophistication with which it was executed.
The Equity Bank fraud case exposes critical vulnerabilities in the banking sector, particularly in the management of internal accounts and transaction monitoring. The fact that such a large sum was siphoned over a short period raises questions about the effectiveness of existing fraud detection mechanisms. The case is expected to have far-reaching implications for Kenya’s financial and legal sectors. Authorities are likely to intensify scrutiny of banking practices, potentially leading to stricter regulations and enhanced oversight. For Equity Bank, the financial loss is compounded by reputational damage, which could affect customer trust and investor confidence.
From a legal perspective, the prosecution of Ms. Kadiki and her alleged accomplices will test the judiciary’s ability to address complex financial crimes. The case may set precedents for how similar fraud schemes are investigated and prosecuted in the future, emphasizing the need for specialized expertise in financial law.